For nearly nine years, foreign workers in the US who lost their jobs have had a 60-day window to find a new employer or change their immigration status. Now, that protection may be removed. According to a Bloomberg Law report, a proposal from the Department of Homeland Security (DHS) to end the 60-day grace period has cleared a key White House review, moving it closer to becoming public. If approved, the proposal could have a major impact on H-1B visa holders, including thousands of Indian professionals, who are among the biggest users of the visa programme. However, the rule has not taken effect yet, and its final details are still not public.
The grace period was introduced in 2017. It allows certain foreign workers and their dependents to remain in the US for up to 60 consecutive days after their employment ends, provided their authorised stay has not expired. During this period, workers can look for a new job, find another employer willing to sponsor them, or apply to change their immigration status. The rule covers several visa categories, including H-1B, L-1, O-1, E-1, E-2, E-3, H-1B1 and TN visa holders, along with eligible dependents. The provision has been particularly important for H-1B workers who face sudden layoffs, giving them limited time to make decisions without having to immediately leave the country.
If the proposal is finalised as described, foreign workers whose jobs end before their authorised stay expires could face much tougher rules. They and their dependents could generally be required to leave the US immediately after losing their jobs. Changing employers or immigration status from within the country could also become more difficult unless US Citizenship and Immigration Services uses its discretion to forgive a lapse in status. The possible change comes at a time when job cuts and uncertainty in the technology sector have already raised concerns among skilled foreign workers.
Indian nationals are among the biggest beneficiaries of the H-1B programme. They accounted for 71% of successful H-1B applicants in fiscal year 2024, according to the information provided. The proposal could therefore have a significant impact on Indian professionals and their families living in the US. The Indian-American population in the country is estimated at around 5.2 million. Former White House adviser Ajay Jain Bhutoria criticised the proposal and called for the grace period to be extended to 180 days instead. "Eliminating the 60-day grace period is both inhumane and unworkable. When a high-skilled worker faces a sudden termination, 60 days is already dangerously short. Stripping away this protection entirely leaves thousands of law-abiding individuals with zero time to wrap up their lives," said Bhutoria. He also said families could face serious disruption if workers are forced to leave immediately after losing their jobs.
The next major step is the proposal's publication in the Federal Register. That will reveal exactly what DHS is proposing and start the public comment process before any final decision is made. For now, the key takeaway for H-1B workers is that the 60-day grace period remains in place. The White House review is an important step forward for the proposal, but it is not the final rule. The development is said to be part of a broader set of proposed policy changes affecting the H-1B programme, making the next steps closely watched by foreign workers, US employers and immigration experts alike.
